Why Russia, China, and Other Countries Are Demanding Big Tech Companies Build Local Offices

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Authoritarian countries want data from U.S. firms. Even when it violates U.S. law.

Authoritarian countries, especially China and Russia, want this data from U.S. firms. Wielding new data localization and other legal authorities, they are bringing these requests to U.S. companies’ doorsteps—because even if the data is overseas, employees and offices may be well within reach.

Chinese and Russian law enforcement agencies will directly approach U.S. companies to ask for this information on their citizens; intelligence and security services may also harass or intimidate employees on the ground in local offices, pointing to data access laws and demanding they hand it over. Sometimes, the threat is made quietly or implicitly.

staff on the ground in Russia and sent armed, masked thugs to sit around Google’s Moscow office. Particularly as U.S. tensions continue to heighten with China and Russia, there is little indication this pressure will fade.To be clear, U.S. businesses are not just dealing with these issues in China and Russia. Many countries, including U.S. allies and partners, legitimately need access to information around criminals, terrorists, and spies in their borders.

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